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What is the difference between a Members Voluntary Liquidation and an insolvent liquidation?

April 26, 2017difference insolvent Liquidation members Voluntary

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What is the difference between a Members Voluntary Liquidation and an insolvent liquidation?

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In a Members Voluntary Liquidation the directors believe the company has sufficient funds to return money to its shareholders after payment of the creditors and have sworn a declaration of solvency to that effect. In an insolvent liquidation the company has insufficient funds to meet all its liabilities.